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- (a) Compute the present value of an annuity due that pays £2,000 annually, at a rate of 3% p.a. effective, for 20 years. (b) Compute the accumulated value of an annuity immediate that makes semi-annual payments of £500 for 10 years and then it makes annual payments of £1,000 for another 10 years. The annual effective rate is 4%. (c) The annual effective rate is 5%. An annuity is paid continuously at a rate of P pounds per month. Its accumulated value after 10 years is £10,000. Find the monthly payment rate.a) Compute the present value of an annuity immediate that pays £100 at the end of each month for 5 years at a rate i = 7.5% p.a. effective. b) Compute the accumulated value after 10 years of an annuity due that pays £10,000 per year in equal quarterly installments at a rate i = 7.5% p.a. effectiveCompute the accumulated value of an annuity immediate that makes semi-annual payments of £500 for 10 years and then it makes annual payments of £1,000 for another 10 years. The annual effective rate is 4%.
- The effective rate of interest is 6% per annum. An annuity is payable annually in arrears for 25 years, where the first payment is £10,000 and the payments increase by £2,000 each year. i) Calculate the present value of this annuity. ii) Calculate the value of this annuity at the end of the payment stream.a. Find the amount and present value of an annuity of 440 payable every three months for 15 years and 3 months, if money is worth 5 ½%, m=4 b. Find the cash value of a sala set that can be bought for 2,500 down payment and 288 a month for 36 months if money is worth 3 ½% compounded semi-annually.An ordinary annuity paying P1,811 at the end of each year for 15 years, is to be converted to an annuity paying an amount at the beginning of each month for 15 years. Money is worth 10% compounded annually. Determine the following: a.) Present Value of the Payment. b.) Amount being paid at the beginning of each month for 15 years. Note: Don't use excel. Use or draw some cashflows.
- Find the present value at outset of a level annuity of £1500 per year, payable annually in arrears for 15 years, deferred for 6 years, if the effective rate of interest is 9% per annum during the first 10 years and 8% per annum thereafter.Find the payment that should be used for the annuity due whose future value is given. Assume that the compounding period is the same as the payment period. $168, 000; monthly payments for 5 years; interest rate 3% .Find the future value of the following ordinary annuities. Payments are made and interest is compounded as given. R = $9000, 5% interest compounded annually for 15 years What is the future value of the ordinary annuity? $ (Round to the nearest cent.)
- An annuity contract provides for the payment of P2,200 at the end of every month for 10 years. Money is worth 7% compounded semi-annually. What is the conversion period A.m=1 B.m=2 C.m=4 D.m=6 What is the amount of the annuity at the end of 10 years? A.P3,838,328.45 B.P3,670,994.35 C.P380,786.58 D.P378,698.242. An annuity pays 200 at the end of each month for 10 years. Using an annual effective interest rate of 10%, express the present value of the annuity in terms of a1010.1 (12)Find the present value of an ordinary annuity which has deposits of P60,000 semiannually for 5 years at 6.5% compounded semiannually.